The National Reverse Mortgage Lenders Association reported this week that new data shows senior homeowners saw their housing wealth grow by an average of 3.7 percent in Q2 2021. This equates to a $339 billion increase in home equity levels for homeowners over the age of 62, bringing their total market share to a record $9.57 trillion.
The increases in home values and thus in the amount of equity is creating a prime opportunity for seniors to focus on their retirement income plans. For those on a fixed income, reverse mortgage programs allow them to leverage their home’s equity to fund their retirement.
Reverse mortgages can help those 62 or older eliminate monthly mortgage payments while also creating a reliable stream of supplemental income in their golden years. Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
